Relationship of financial ratios and stock return---case from three indurstries

• Main Authors: Feng-Zen Hu, 胡豐贊
• Other Authors: Der-Yuan Yang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/44793552219765107458

碩士 === 國立高雄第一科技大學 === 金融營運所 === 92 === The public has more choices in investment these years. They can save the money in the bank, invest on real estate and stock market. The accounting information is an important role in stock evaluation, especially for financial ratio. The traditional industry is in depression for last ten years and it seems going up lately. This research is target on public domestic company regarding cement, paper and car that are all in traditional industry. The difference of financial ratio to be showed in stock profit prediction is discussed in this research. The observation period is from year of 1995 to 2002, totally in eight years. Principal Component Analysis classifies twenty-one different financial ratios. Then, analysis is come out via Stepwise Selection Regression. Finally, macroeconomics variable will be included for further research. The analysis result is as follows: 1.If we use Principal Component Analysis to classify, there are six ratios for cement industry and five ones for paper and car industry individually. Besides, significant variable is different for each industry. 2.If we use Stepwise Selection Regression, significant variable is different for each three industry of cement, paper and car, there’s two significant variable for cement industry, three ones for paper industry but six ones for car industry. The cement and paper industry have the same significant variable that is debt to total assets ratio. The paper and car industry has the same significant variable that is current ratio and cash flow adequacy ratio. However, there’s a difference on explanation. 3.After macroeconomics variable is included, there’s three significant variable for cement industry, five ones for both paper and car industry. These three different industry have some significant variable are in the same, however, but there’s a difference on explanation. In a conclusion, not all the financial ratios can be used for each industry and it’s provided to the investors for their reference.